NVIDIA Corporation (NASDAQ: NVDA) stock lost over 5.8% on 25th Feb, 2021 (As of 12:09:38 UTC-5; Source: Google finance) after the company forecast lower-than-expected fiscal first-quarter revenue, with its flagship gaming chips expected to remain in tight supply for the next several months.
NVDA in the fourth quarter of FY 20 has reported the adjusted earnings per share of $3.10, while the adjusted revenue growth of 61.13 percent to $5 billion in the fourth quarter of FY 20. The revenue in the company’s gaming segment was $2.5 billion, which is above analyst estimates of $2.36 billion, according to data from FactSet. Data center revenue was $1.9 billion, which is above estimates of $1.84 billion according to FactSet data.
From a sequential perspective, the Data Center compute’s stronger-than-expected double digit growth was more than offset the anticipated decline in Mellanox revenue, which included a large nonrecurring network sale to a single OEM in Q3. Compute growth was driven by vertical industries, where OEM partners continued ramping up to A100-based servers, and the own DGX system sales were strong.
The company expects first-quarter 2022 revenue to be of $5.30 billion, plus or minus 2%, above analysts’ average estimate of $4.51 billion. The company expects the new mining chips to generate about $50 million revenue in its fiscal first quarter. The non-GAAP gross margins are expected to be in the range of 63.8% and 66%, respectively, plus or minus 50 basis points. The GAAP and non-GAAP operating expenses are expected to be approximately $1.67 billion and $1.2 billion, respectively.
For the full year, the company expects to grow non-GAAP OpEx in the mid-20% range. GAAP and non-GAAP other income and expenses are both expected to be an expense of approximately $50 million. Capital expenditures are projected to be in the range of approximately $300 million to $325 million.
Meanwhile, the company in September had announced its plans to acquire Arm from SoftBank Group in a transaction that will create the premier computing company for the age of AI. At that time, the company had said it would take approximately 18 months to secure regulatory approvals in the U.S., the U.K., the EU, China and other jurisdictions.
Additionally, the company will pay its next quarterly cash dividend of $0.16 per share on March 31, 2021, to all shareholders of record on March 10, 2021.